RealtyTrac Report: Foreclosures Down in First Half '16

IRVINE, CA—The number of US homes in foreclosure was down 20% in the first six months of the year compared to the previous six months and dropped 11% when compared to the first half of 2015. These numbers come from RealtyTrac’s Midyear 2016 U.S. Foreclosure Market Report , which shows a total of 533,813 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions in the first six months of 2016. RealtyTrac is the nation’s leading source for comprehensive housing data.

Daren Blomquist

Counter to the national trend, 19 states posted year-over-year increases in foreclosure activity in the first half of 2016, including Massachusetts (up 46%); Connecticut (up 40%); Virginia (up 18%); Alabama (up 11%); and New York (up 10%). Among the nation’s 20 most-populated metro areas, five posted year-over-year increases in foreclosure activity: Boston (up 38%); Philadelphia (up 7%); New York (up 4%); Washington, D.C. (up 3%); and Baltimore (up 1%). “Although there are some local outliers, the downward foreclosure trend continued in the first half of 2016 in most markets nationwide,” said Daren Blomquist , senior vice president at RealtyTrac. “While U.S. foreclosure activity is still above its pre-recession levels, many of the states hit hardest by the housing crisis have now dropped below pre-recession foreclosure activity levels. With some exceptions, states with foreclosure activity continuing to run above pre-recession levels tend to be those with protracted foreclosure timelines still working through legacy distress from the last housing bust.” There were a total of 280,989 U.S. properties with foreclosure filings in Q2 2016, down 3% from the previous quarter and down 18% from a year ago to the lowest level since Q4 2006. Nationwide foreclosure activity in Q2 2016 was still 21% above the pre-recession average of 232,082 properties with foreclosure filings per quarter in 2005, 2006 and 2007, but Q2 2016 foreclosure activity was below pre-recession averages in 15 states, including Arizona, California, Colorado, Georgia, Michigan, Nevada, Ohio and Texas . States where Q2 2016 foreclosure activity was still above pre-recession averages included Florida, New Jersey, Illinois, New York, Indiana, South Carolina, Massachusetts and Washington . There were a total of 94,469 U.S. properties with a foreclosure filing in June , down 6% from the previous month and down 19% from a year ago to the lowest level since July 2006 — a nearly 10-year low. A total of 253,408 U.S. properties started the foreclosure process in the first half of 2016, down 17% from a year ago the lowest level for any half-year period since RealtyTrac began tracking foreclosure starts in 2006. The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month — broken out by type of filing. Some foreclosure filings entered into the database during the month may have been recorded in previous months. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90% of the U.S. population.